MRP yesterday said it was seeking resource consents for a coal-fired generation plant at its Marsden Point site, south of Whangarei, essentially by refitting the existing 320MW oil-fired plant that has sat idle since its construction in 1978.

Chief executive Doug Heffernan said MRP had earlier this year ruled out commissioning the Marsden B plant as a dry-year reserve plant, but now believed conversion to coal was an economic option, particularly if no new significant gas discoveries were made in the next few years.

"Marsden Point has sound infrastructure with a good deepwater port for bringing in coal, access to transmission and cooling water and a location in a growing market in Northland with additional straightforward existing transmission access to the greater Auckland region."

Heffernan said MRP was looking at a number of new generation projects to meet New Zealand's growing demand for electricity supply and assist in meeting future requirements.

"No one fuel will meet that growing demand. However, options as to how future requirements will be met need to be explored now. Trade-offs between environmental, economic and social wellbeing and the cost of providing that generation need to be made."

The new station could be operational by 2008-09, given satisfactory resource consent approvals.

Greens co-leader Jeanette Fitzsimons predictably slammed the proposal as "a quick and dirty fix that will make clear and sustainable energy solutions harder to develop".

Allowing cheap options such as coal-fired stations to be built would make renewable sources, like wind energy, less viable. The full cost of coal, including New Zealand's loss of carbon credits, should be taken into account during the consent process.

MRP's government-owned rival, Genesis Energy, last week said it was proceeding with its “E3P” 385MW gas-fired station at Huntly.